‘Governance failure’: Mohandas Pai, Kiran Mazumdar-Shaw flag Bengaluru infra mess as tech firm exits ORR

Rajesh Yabaji, co-founder and CEO of BlackBuck, said the company decided to shift the office from the Outer Ring Road, citing traffic and poor infrastructure

After Bengaluru-based logistics tech company BlackBuck announced that it is moving out of its office on the Outer Ring Road (ORR), citing traffic and poor infrastructure, industrial leaders Mohandas Pai and Kiran Mazumdar-Shaw have called for an urgent intervention of the Karnataka government to improve the city’s infrastructure.

“Big big failure of governance in Bengaluru,” said former Infosys CFO Pai, reacting to the developments. In a post on X, Pai tagged Bengaluru Development Minister and Karnataka Deputy Chief Minister D K Shivakumar and said, “Please see, cos are moving out of ORR. Situation beyond hope. Please intervene”.

Reposting Pai’s post, Biocon founder Mazumdar-Shaw said, “This is serious. Emergency measures needed to fix these issues”.

On Tuesday, Rajesh Yabaji, co-founder and CEO of BlackBuck, said, "ORR (Bellandur) has been our ‘office + home’ for the last 9 years. But it’s now very-very hard to continue here.

"We have decided to move out as the average commute for my colleagues shot up to 1.5-plus hours (one way); roads full of potholes and dust, coupled with the lowest intent to get them rectified," he added, stating that he did not expect any of the ongoing issues to be addressed in the next five years.

The company employs over 1,500 people and is backed by marquee investors including B Capital, Accel, and Goldman Sachs. Yabaji, however, did not disclose where the office would be relocated.

Krishna Kumar Gowda, general secretary of the Greater Bengaluru IT Companies and Industries Association, told DH that he was saddened by Yabaji's announcement and would try to ensure that BlackBuck wouldn’t leave Bengaluru. He fears multiple firms along the ORR are contemplating the same move.

"We express deep concern over the continued infrastructure neglect along the ORR, exemplified by slow-moving traffic, endless potholes, and unreliable commute times. The decision of leading firms to move out highlights the urgent need for government intervention. We call for a transparent roadmap to improve roads, metro connectivity, and public utilities," he said.